For many borrowers it has been a long and hard road over the past months to try to refinance their homes. Credit has been tight, mortgage companies are making it harder every day to qualify for a loan, and some borrowers of mortgages are more than their homes are worth. But now there may be some relief for many borrowers.
As part of the Home Affordable Act, Fannie Mae has introduced the Fannie Mae Refi Plus program. The Refi Plus program is designed to help borrowers who are current on their monthly mortgage payments, but may benefit from refinancing into a mortgage with better terms and a lower payment.
Who can benefit from the Refi Plus Program? Borrowers trying to refinance out of an adjustable rate mortgage, or a borrower looking to lower their monthly payment. Another important benefit is for borrowers who LTV may have risen to 105%. For instance, let's say your mortgage is $ 315,000, but your home is worth $ 300,000. You would be eligible to qualify for this loan because you LTV would be 105%.
What are some of the major highlights of this loan program?
* Max 105% LTV and no max for CLTV
* Properties eligible are Owner Occupied, 2nd Homes and Non-owner Occupied (Investor)
* No mortgage insurance if existing loan does not have mortgage insurance, regardless of new LTV
* 2nd home must be 1-unit
* For investment property, no limit on the number of mortgages to the same
There are many restrictions to this program so call to see if your particular situation will qualify. However. just a few of the restrictions are if there is subordinated financing, it must be re-related. No new subordinate financing is allowed. Loan limits are set to the maximum conforming loan limits for 1-4 unit properties. Most importantly, your existing loan must be a Fannie Mae loan.